Otkritie FC Bank

Overview

Bank Otkritie Financial Corporation

native name	ПАО Банк «Финансовая Корпорация Открытие» (Банк «ФК Открытие»)
former name	NOMOS-Bank
type	Public Joint-Stock Company
traded as	lse: OFCB, mcx: OFCB
foundation	December 15, 1992‡R1R‡
defunct	1 January 2025
location city	Moscow
location country	Russia
key people	Mikhail Alekseev (CEO)‡R2R‡
industry	Banking
services	Financial services
owner	VTB Bank
rating	Ba3 (Moody's), BB− (S&P) (2017)‡R3R‡

PJSC "Bank Otkritie Financial Corporation"[4] or Otkritie FC Bank (, translates as opening or discovery) is one of Russia's largest full-service commercial banks.[5] It has more than 440 offices of different formats in Russia.[6] It was co-founded by Igor Finogenov, now CEO of the Eurasian Development Bank.[7]

Otkritie Bank ranked 1st among privately owned banks and 4th by assets among banking groups in Russia.[8] In August 2017, Otkritie was bailed out by the Central Bank of Russia,[9] at a cost to the state of over $8 billion.[10]

History

The lending institution was registered as TIPCO Venture Bank in 1992. The bank was renamed in 1994 as joint stock investment commercial bank Novaya Moskva (, Russian for New Moscow), and Nomos-Bank in 2007. ICT Group (Alexander Nesis is a co-owner) gathered a controlling stake in the bank in May 2006.[12]

Otkritie Holding

In 2012, Otkritie took over NOMOS-Bank,[13] using a $1bn loan from VTB Bank.

In 2014, NOMOS-Bank was renamed to Otkritie Financial Corporation Bank.[14]

In 201,4 the Bank of Russia picked Bank FC Otkritie to rescue National Bank Trust.[15]

Otkritie allegedly became Russia's largest private bank in late 2014 by buying 625 billion rubles in bonds from the state oil company Rosneft, using them as collateral to obtain reverse repo loans from the Central Bank of Russia, then passing on the dollars it received to Rosneft, which is not allowed access to international capital markets due to international sanctions.[16] As repo funding had a 2.5% interest rate and the bond had a 7.5% coupon, Otkritie made billions from the trade.[16]

In 2015, all in all, Otkritie Holding's banks lay claims to get a big share of government aid among all private banks (Rub 65.2 bln or 7.8% of the government program).[17]

Acquisitions

In 2016, Financial group has completed the legal takeover of Khanty-Mansiysk Otkritie Bank by Otkritie FC Bank. As the financial group's press service reported, the merged bank would hold total assets of Rub 3.1 tln.[17]

In December 2016, Otkritie Group and Rosgosstrakh Group (Russia's largest insurance company) agreed to merge.[18]

Outflow of liquidity

Otkritie experienced a significant outflow of liquidity in July 2017, after it was assigned a BBB− rating by ACRA.[19] According to the Financial Times, senior managers of Otkritie have removed their personal funds from the bank.[20] By late August Oktrikie shares had fallen to a 20-month low.[21]

On 29 August 2017, the Central Bank of Russia announced it would take over administration of Otkritie.[22][23]

In August 2021, the Central Bank of Russia announced the launch of preparations for the sale of Otkritie FC Bank, as well as the dates for accepting applications from potential shareholders from 11 to 22 October of the same year. The regulator is studying options to sell Otkritie FC Bank shares through organized listing and alternate ways for selling its shares to a strategic investor.

Otkritie FC Bank

History

Otkritie Holding

Acquisitions

Outflow of liquidity

Links to VTB Bank

Ownership

Lawsuit

Sanctions

Management Board

Currency exchange

External links

References